Of the amount, the bigger share of P35 billion was accounted for by excise tax payments by cigarette makers. The amount marked an annual rate of increase of 77.7 percent.
Excise tax payments by manufacturers of alcoholic beverages amounted to P21.3 billion, up year on year by 39.6 percent.
The higher collection was made possible by the Sin Tax Reform law, which took effect in January this year. The law raised the excise tax rates for so-called sin products and mandated the gradual shift to a unitary tax rate over the medium term.
The law is targeted to increase the BIR’s sin tax collection by P33.9 billion this year to P85.86 billion.
Internal Revenue Commissioner Kim Henares earlier expressed confidence that the target would be achieved given the favorable collection performance so far in the year.
The impact of the law on the BIR’s revenue collection was not substantial earlier in the year because of overstocking, officials said. In particular, manufacturers produced more cigarettes and alcoholic beverages toward the end of last year and kept the excess goods in their warehouses to temporarily avoid paying the higher taxes (the excise tax is paid upon withdrawal from manufacturing plants).
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Topic: ‘Sin’ tax collection up 61% in 8 months (Read 586 times)